What does the market price of a company's share indicate?

The company's financial strength Investor perception of the company's future prospects The company's current earnings The company's book value

What does the P/E ratio tell an investor?

The amount of money to invest to earn Re.1 of the company's earnings The company's book value per share The bank's spread The efficiency of fund utilization

What is the book value of a company?

The total assets of the company The total liabilities of the company The net value of all assets after deducting liabilities The market value of the company's shares

Why is the P/B ratio considered more relevant for banks than the P/E ratio?

It reflects the bank's profitability It indicates the bank's market share It helps understand the efficiency of fund utilization It is based on the company's earnings

What does a high P/B ratio suggest about investor expectations?

Investors expect the company to incur losses Investors expect the management to generate more value from assets Investors expect the company's stock price to decline Investors expect the company's book value to decrease

What is a key factor that influences a bank's P/B ratio?

The bank's marketing strategy The bank's spread The bank's customer service The bank's employee satisfaction

Why is the P/E ratio irrelevant during a company's loss-making periods?

The company's stock price is zero There are no earnings to calculate the ratio The company's book value is negative The company's assets exceed its liabilities

What additional ratio, when combined with the P/B ratio, provides a more effective analysis of a bank's financial health?

Price-to-Sales Ratio Debt-to-Equity Ratio Return on Equity Ratio Current Ratio